Eskom’s announcement to decommission five power stations was met with disbelief and shock.
The power utility plans to close Kriel -, Komati -, Hendrina -, Camden -and Grootvlei Power Stations in order to accommodate renewable independent power producers (IPPs).
This news broke last week and Eskom workers and contractors are not certain what the future holds for them when this chapter closes.
Eskom spokesperson Khulu Phasiwe, said the decision to close down the power stations was taken by Eskom management last year and the idea was to first communicate it to stakeholders before making a public announcement.
However, their plans changed when coal truck drivers publicly protested the phasing out of Eskom’s coal transport contracts in accordance with the closure of the power stations.
Some of the power station units were earlier kept idling along at a slow phase and only ramped up if supply from renewable IPPs dipped. That however resulted in a reduction in revenue from the stations, while overheads remain unchanged.
Eskom’s efforts to renegotiate the IPP contracts were overruled by government and the utility has no choice but to close down the stations as economic growth and electricity demand remains flat.
Trade union federation, Congress of South African Trade Unions (COSATU) demanded the suspension of the introduction of IPPs to the electricity grid by Eskom until there is a commitment to protect jobs.
The five stations have over 6 000 employees alone. If you add the coal miners and the truck drivers, then the figure rises sharply.
Kriel Power Station (Photo: Paul Meanwell).
“Eskom and government should suspend their plan to shut down the power stations until a just transition-solution is arrived at by all affected stakeholders. The federation is withdrawing its support to this policy measure, until we get assurances that jobs will be preserved and workers will not be deprived of their only source of survival,” said Cosatu’s national spokesperson, Sizwe Pamla.
The National Union of Mineworkers (NUM)’s national spokersperson, Livhuwani Mammburu said green energy is not reliable.
“We have further noted that green energy is not even reliable. It doesn’t have the capacity to replace the current base load as currently subjectively portrayed. The sun doesn’t shine every day and also the wind doesn’t blow every day. We have a problem with the selective and subjective bias that opportunistically purports the renewable energy as the alpha and omega for South Africa whilst completely turning a blind eye to the realities that these renewables can’t be used as base loads. What is going to happen if the sun does not shine and also when the wind does not blow? We will definitely have a black out.”
NUM did an impact study and found that there will be major retrenchments in the energy and mining sector.
“IPPs are not labour intensive, it is more expensive than coal, there is no social labour associated with the decision to introduce IPPs, the whole supply chain in the coal industry will be affected and it will affect the public in that they will have to pay more on electricity directly and indirectly,” Mammburu said.
Eskom weighed in their decision and said some of these stations are nearing the end of their lifespan.
There is so much history and ground breaking methods intertwined in the fascinating working of these power stations.
One can argue that because of aging equipment and back dated technology; it is time to build something more modern.
“Working within a context of surplus electricity supply, low economic growth, and the need to add new renewable energy projects, Eskom has had to create space for the renewables by proposing to close some of the coal-fired power stations. This will also help meet South Africa’s commitments to reduce greenhouse gas emissions,” Eskom reacted to the announcement.
Eskom said they will be meeting with various stakeholders, including the trade unions and government in an effort to address this matter.
“We are hopeful that the matter will be resolved amicably, and without any job losses,” the power utility said.
There is still not a clear indication as to what technology will be used by the IPPs.
“Independent Power Producers is a process that is facilitated by the Department of Energy. It is therefore up to Independent Power Producers to decide which technology they would like to introduce, and where. Eskom will sign them up as soon as they have been approved by the Department of Energy,” was the response from Eskom’s Media Desk.
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